The recessions accompanied by a financial crisis are more severe than recessions that do not involve bank crises because o a. people use the easy credit to buy assets when their income and credit are not sufficiently high ( b. severe financial crises reduce savings, increase consumption and reduce exports thereby increasing the trade deficit c. severe financial crises collapse asset markets, lower real housing prices and cause a significant fall in gdp and employment. d. bank failures reduce the money supply, increase the interest rate and cause high inflation the large budget deficits of $1.4 trillion in fiscal year 2009 and $1.3 trillion in fiscal year 2010 were o a. caused partly by the increase in government spending including spending to bail out failed financial institutions and by the deep decline in tax revenues as incomes and profits fell. o b. caused by the crowding out effect of increased government spending and increased welfare spending c. caused mostly by huge bailouts given to big investment banks and insurance companies o d. the result of the ailing social security and medicare programs and the growing number of aging baby-boomers receiving benefits.